TrueCar issued its third quarter 2017 financial results on November 6,
2017, and reported third quarter revenue of only $82.4 million. During
the conference call that followed, the Company attributed the unexpected
sales miss, in part, to the fact that its channel partner USAA had
undergone a significant website redesign which impacted traffic and
close rates. As a result, TrueCar experienced a 5% decline in unit sales
from USAA during the quarter. Following this news, TrueCar’s shares fell
more than 35% to close at $10.58 per share on November 7, 2017,
significantly lower than the Offering price of $16.50 per share on April
27, 2017. Then on February 2, 2018, TrueCar disclosed the unexpected
resignation of its Chief Financial Officer, Michael Guthrie, for
personal reasons effective as of the prior day.